The Bonneville Power Administration established a cooperative funding agreement with the National Fish and Wildlife Foundation (NFWF) to operate the Columbia Basin Water Transactions Program (CBWTP). The CBWTP is a program started in FY2002 that funds and supports innovative water transaction projects implemented by qualified local entities (QLEs) throughout flow-limited Columbia River Basin tributaries.

There are currently 10 QLEs in the states of Oregon, Washington, Idaho and Montana participating in the CBWTP. The voluntary transactions between these QLEs and willing landowners increase flows for salmon spawning, rearing, and passage and resident fish habitat.

Project Background:
In December 2001, BPA issued a Request for Qualifications for Water Program Solicitation (Solicitation) requesting statements of qualifications from individuals or entities interested in helping BPA implement the Biological Opinion for the Operation of the Federal Columbia River Power System and aspects of Implementation Provision A.8 from the Northwest Power Planning Council's Fish and Wildlife Program. To fulfill these goals and meet the other objectives outlined in the Solicitation, BPA supports the implementation of innovative transactional strategies to increase tributary flows within the Columbia River Basin (Washington, Oregon, Idaho, and Montana).

Qualified Local Entities:
BPA sought participation from local entities that would be able to develop innovative transactional strategies to increase tributary flows. BPA approved the following entities as qualified local entities in 2002: Oregon Water Trust, Deschutes Resources Conservancy, Oregon Water Resources Department, Washington Water Trust, Idaho Department of Water Resources, Montana Water Trust, Trout Unlimited, Bonneville Environmental Foundation, Walla Walla Watershed Alliance, and Washington Department of Ecology. These qualified local entities are eligible to submit transaction proposals to the regional entity for funding consideration.

Regional Entity:
In April 2002, BPA also selected the National Fish and Wildlife Foundation to serve as the regional entity for the Columbia Basin Water Transactions Program. NFWF is a non-profit foundation established in 1984, and it is authorized to accept federal funds and leverage them with non-federal partners to invest in innovative strategies for increasing tributary flows. To date the foundation has funded over 5000 projects worth more than $500 million in federal and nonfederal investments to meet national conservation priorities. NFWF established its Pacific Northwest Regional (PNW) Office in September 2000 in order to develop innovative partnerships with both federal and nonfederal entities. The PNW Office currently manages over 250 projects in the Northwest worth over $35 million. NFWF and its PNW office has built upon its existing capabilities in order to operate the Columbia Basin Water Transactions Program through its cooperative funding agreement with BPA.

NFWF receives, evaluates, and ranks innovative water proposals submitted by local entities, and facilitates the implementation of projects and individual water transactions with funding from BPA, NFWF and other sources. Using a set of approved criteria, NFWF makes funding recommendations on water project proposals submitted by local entities and obtains BPA approval before funding a project under this program. NFWF ensures effective implementation of funded projects and compliance with the National Environmental Policy Act through its agreements with the local entities participating in the Columbia Basin Water Transactions Program. NFWF develops outreach information, issues transaction solicitations, and qualifies additional local entities. NFWF provides BPA with annual reports explaining the success of the Columbia Basin Water Transactions Program to develop and implement innovative ways to increase tributary flows in the Columbia Basin.